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Transformation Journey

We have delivered on our commitments, executing each phase of our playbook through a series of steps that we define as our transformation journey. Looking ahead, we will continue to execute against these five priorities to build a foundation for growth.

1. Inspire and Take Care of Our Colleagues

2. Focus on Customers

3. Optimise Costs

4. Seize the Market

5. Build the Financial Foundation



In FY21, DXC launched our People First strategy to attract and retain top talent. We have a new leadership team and have significantly increased employee engagement by listening, seeking to understand and acting at pace.


Employee Engagement

We significantly improved our employee engagement score as measured by two sentiments: “I would recommend DXC as a great place to work” and “I am happy to work at DXC.”

Our Mission

Be an IT services company using the power of technology to build better futures for our customers, colleagues, environment and communities, helping our customers deliver business impact, and be the employer of choice.


Our Values

Deliver

We do what we say we are going to do.

Collaborate

We work as a team — globally and locally.

Community

We believe in stewardship and building a sustainable company that supports our communities.

Care

We take care of each other and foster a culture of inclusion and belonging.

Do the right thing

We act with integrity.


Net Promoter Score

The Net Promoter Score (NPS) is a measure of customer intimacy. Since June of 2020, our NPS has increased by 44 points.

Customers in more than 70 countries trust DXC to run their mission critical systems and operations while modernising IT, optimising data architectures, and ensuring security and scalability across public, private and hybrid clouds. By applying our innovations across the Enterprise Technology Stack, we help customers improve business outcomes, manage disruptions, develop greater resiliency and lower costs.


Delivering for Our Customers

Developing the digital insurance marketplace

Lloyd’s is the world’s leading insurance and reinsurance marketplace. DXC supports this marketplace, which processes 3.5 million transactions annually with close to 100 billion transferred each year between insurers, brokers, loss adjusters and partners. Now DXC, Lloyd’s and London Market Insurance Companies are partnering to create the world’s most advanced technology-led insurance marketplace — where complex technical accounting will take place in just seconds.

Running mission critical systems and cloud migrations

Sabre, a leading travel technology company, turned to DXC to unlock value across its business by transforming Sabre’s mission critical operations. Sabre extended its long-term partnership with DXC to provide outsourcing and IT modernisation capabilities in a multi-year agreement. In addition to securely and effectively running and maintaining Sabre’s systems, DXC is also assisting Sabre in migrating workloads to the cloud.

Driving major transformation and savings

Nissan Motor Co. doesn’t want its business disrupted by outages as it drives toward maintaining leadership in an industry being transformed by innovations such as autonomous and connected vehicles. So, Nissan is exiting its data center and renewing and expanding its outsourcing contract with DXC. DXC will help Nissan move its workloads to the cloud and a co-location site, delivering to Nissan a 23% overall savings over five years.

Transforming across the Enterprise Technology Stack

Zurich Insurance, a leading multi-line insurer in more than 215 countries and territories, has extended its successful partnership with DXC, a relationship that began more than 15 years ago. DXC will provide IT and security services over the next five years as a vital component of the company’s IT transformation. Zurich will leverage DXC capabilities across the Enterprise Technology Stack to gain the ability to deploy applications faster through automation and improve operational resiliency.
70+
countries
130,000+
employees
60+
years of innovation

We are proud of how we have improved and scaled global delivery and simplified our operations. Through these efforts, we have achieved $550 million in savings, without disruption.

DXC manages many of the largest mission critical enterprise applications in a complex IT environment encompassing:

650,000
servers
Nearly 700,000
MIPS (million instructions per second)
3,000
petabytes of storage
More than 7 million
devices


Improving Delivery

Customers

We are making it easier for our customers to do business with us, simplifying processes and removing friction and cost.

We have improved the customer experience by focusing on providing stable, predictable operations with agility and velocity. Our seamless and silent-running technology services drive greater automation and flexibility into operations. We have reduced the number of “Priority One” critical operational incidents by 54% per quarter and have reduced the average time to recovery by 17%, minimising customer impact.

We are introducing DXC Platform X™, an artificial intelligence platform for IT operations. Platform X is our proprietary data-driven intelligent automation platform that enables customers to detect and resolve issues quickly and automatically predict and prevent future problems before they happen.

Colleagues

We are giving our colleagues the right tools, technology and processes to deliver excellence for our customers. We have empowered our colleagues by leveraging collaboration, automation, robotics and complex services. 

We have gone to a virtual-first environment, enabled by new technology tools and a next generation, highly secure network. This has allowed us to optimise our real estate footprint. Our internal processes and operations have also been simplified to unlock value and address overhead costs. This includes a number of one-touch tools to reduce the number of systems, such as payroll and enterprise resource planning.



Expanding Margins

In addition to driving down costs, we have increased operational efficiency and enhanced productivity by simplifying our customer delivery footprint and internal operations. We have done this by:

Establishing Global Innovation and Delivery Centers (GIDCs) in India, the Philippines, Eastern Europe and Vietnam, delivering greater scale and driving cost advantages.

Reducing our real estate footprint and costs.

Decreasing the number of contractors to optimise the ratio of employees to contractors to be in line with the industry standard.

Leveraging automation at scale globally.


Optimise Costs

Adjusted EBIT Margin

We are scaling our delivery footprint and simplifying the organisation. We delivered $550 million of cost savings and improved adjusted EBIT margin in each quarter.


DXC helps our customers run, modernise and continuously optimise their mission critical IT systems across the Enterprise Technology Stack. For a long time to come, IT will be hybrid — a combination of traditional and digital. Digital alone will not satisfy the business case, or the desire for speed, agility and lower costs that customers seek. Whether through on-premises infrastructure or a hybrid cloud model, customers partner with DXC to realise better performance, achieve more agility, optimise costs and enable a better overall user experience.

Bridging traditional IT and digital services is an opportunity for DXC. Customers are asking us to help strengthen and modernise their IT systems and build a bridge to digital. We are uniquely positioned to help our customers modernise their IT systems and move to a hybrid model in a secure manner:

  1. Our capabilities across the Enterprise Technology Stack mirror how our customers think about their business needs both now and for the future.
  2. We are one of the few IT services players with the scope, scale and relevance across the full Enterprise Technology Stack.
  3. We deliver traditional IT services, such as IT outsourcing and applications, and digital IT, such as cloud, securityanalytics and engineering.

Book-to-Bill Ratio

We are winning in the market with a book-to-bill ratio of over 1.0 for four straight quarters in FY21.



The Enterprise Technology Stack

Insurance Business Process as a Service and Business Process Outsourcing

With DXC, companies can achieve tangible growth, optimise costs and deliver the best experiences for their customers and employees. We modernise and run companies’ IT systems, provide proprietary modular insurance software and platforms, and operate the full spectrum of insurance business process services. We also help operate and continuously improve bank cards, payment and lending processes and operations, and customer experience operations. DXC administers 13 million insurance policies and contracts, and manages 250 million customer interactions each year across industries.

Analytics and Engineering

DXC helps customers gain data-driven insights, automate operations, design and build effective products and services, and leverage complex software at scale. We help customers to architect, engineer, clean and manage data to unlock its value and then develop analytics and artificial intelligence algorithms to produce proprietary insights, provide better experiences to their customers and better grow and manage their business.

Applications

To help customers modernise their applications to be future-ready for the hybrid technology world, we help them simplify, manage, optimise and modernise enterprise and cloud applications to lower cost, enable growth, and improve business agility and resiliency. DXC customers gain up to 40% cost savings through intelligent automation and speed-to-market improvements of up to 50%. More than 2,200 customers leverage DXC’s intellectual property and our ecosystem of partners to accelerate their modernisation journey through better applications and improved performance.

Security

To help customers secure IT systems and business operations against risk and attacks, we weave cybersecurity and resiliency into enterprise IT systems, operations and culture. Whether modernising and operating IT systems, migrating to the hybrid cloud, protecting data with a zero-trust strategy or managing security operations, DXC makes security and resiliency the foundation of a customer’s enterprise technology so they can focus on their business goals and success.

Cloud

DXC builds, optimises and runs hybrid IT that is integrated with traditional IT systems and works across all cloud models. Our “cloud right” strategy helps our customers to move the right systems in the right sequence to the hybrid cloud so that they can operate in a cost-effective and secure way, with scale, speed, agility and resiliency across public and private cloud environments. We have transformed more than 15,000 applications, and we move 65,000 workloads to the cloud annually.

IT Outsourcing

DXC provides reliable and secure mission critical systems for better performance, greater resiliency and lower costs in a hybrid IT world. We manage and simplify existing infrastructure investments and provide customers with a way forward to modernize IT, including moving portions to the cloud. DXC runs, maintains and protects IT estates for more than 1,300 medium and large enterprises.

Modern Workplace

DXC helps customers reimagine the workplace with a personalised, intelligent, secure and modern experience that fosters employee collaboration and productivity on any device, anytime and anywhere. We help track, support and secure our customers’ IT estates and assist with acquiring intelligence on employee sentiment and utilisation. As the world’s largest workplace services provider, we serve 1,000 customers in 67 countries and manage over 7 million devices globally.



DXC Partner Ecosystem

Together with our curated ecosystem of over 200 industry-leading companies, we help our customers harness the power of the Enterprise Technology Stack to transform their businesses. The deep and comprehensive relationships we hold with our partners enable us to deliver innovative, mission critical solutions with agility, speed and scale. Below are some of our partners.


During FY21, DXC made significant progress on our transformation journey. These actions have stabilised the business and put us on a path to growth.

$17.7B
Revenue
$1.1B
Adjusted EBIT*
6.2%
Adjusted EBIT Margin*
$3.0B
Cash at Year End
$2.43
Non-GAAP EPS**
$5.5B
Total Debt at Year End

* Please see non-GAAP reconciliation to adjusted EBIT in the Form 10-K. Adjusted EBIT margin is defined as adjusted EBIT as a percent of revenue.

** Please see non-GAAP reconciliation to diluted EPS from continuing operations in the Form 10-K.





Build a Stronger Financial Foundation

Improve earnings power with disciplined financial execution. 

Strengthen the Balance Sheet

Committed to an investment grade profile.

Restructuring and Transaction, Separation and Integration (TSI)

Reduce expenses from a four-year average of $900 million to approximately $550 million in FY22 and to under $100 million in FY24.

Cash Flow

Focus on improving cash flow generation to $500 million in FY22 and to $1.5 billion in FY24.

Capital Allocation

As we generate free cash flow, we will deploy capital to invest in our business and return capital to our stockholders, all while staying focused on maintaining our investment grade credit profile.



Focus on Customers

We have built a level of customer intimacy where we are delivering, building strong partnerships and being proactive with our customers. We delivered sequential revenue stabilisation in each quarter of FY21, and increased revenues (excluding dispositions) in each quarter.

Optimise Costs

We are scaling our delivery footprint and simplifying the organisation. We delivered $550 million of cost savings and improved adjusted EBIT margin in each quarter.

Seize the Market

We continue to win in the market and achieved a book-to-bill ratio of greater than 1.0 in each quarter. For FY21 we achieved a book-to-bill of 1.12 compared to 0.90 in FY20.

Strengthen the Balance Sheet

We delivered a $6.5 billion debt reduction, strengthening our balance sheet. We are committed to an investment grade credit profile, and our actions demonstrate our commitment.


DXC is committed to being a responsible corporate citizen, with a focus on environmental, social and governance (ESG) performance. We set and exceed ambitious targets that align closely with United Nations Sustainable Development Goals (SDGs). We support our customers on their own corporate responsibility and sustainability journeys. Our active involvement in our communities produces beneficial outcomes for society.


In 2021, DXC intends to report on the Sustainability Disclosure Topics and Accounting Metrics specified by the Sustainability Accounting Standards Board (SASB) for the software and IT services industry, and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).


Sustainable Development Goals and DXC’s Achievements

SDG 13

Reduced greenhouse gas emissions by 21% in FY20, reaching our target two years early

SDG 7

Reduced energy consumption by 11% and increased purchase of renewable energy by 32% in FY20

SDG 8

Contributed to 24 community development projects in India, benefiting more than 100,000 people

SDG 4

94% of our people have completed training programs through DXC University

SDG 12

99% of e-waste recycled; goal is zero e-waste to landfill through the promotion of reuse



Partnerships for a Better World

Bayernwerk AG
Shrinking the carbon footprint

Bayernwerk AG, which provides electricity, heating and water across southern Germany, has set high-priority targets around sustainability and environmental protection. To help meet these goals, DXC created a digital platform for Bayernwerk to launch energy-efficient products like the EnergyPortal, which makes data more accessible to administrators of the municipalities Bayernwerk serves. It also provides a single source for advanced analytics, which the utility’s customers can use to shrink their carbon footprint and meet their green energy goals.

DXC Dandelion Program
Boosting talent with a neurodiverse workforce

The DXC Dandelion Program helps organisations access the wealth of talent in the neurodiverse space, while providing opportunities for people on the autism spectrum to gain long-term viable employment. The program’s unique recruitment process is tailored to encourage individuals who have struggled in the past, and provides ongoing support throughout their placement. Committed to continue building a workplace that is as diverse as it is dynamic, National Australia Bank (NAB) partnered with DXC to establish the Neurodiversity at NAB program.

Year Up
Helping young adults reach their potential

Every year, DXC welcomes students for internship programs. Interns from across the United States now have joined DXC as part of a partnership with Year Up Inc., an organisation that is committed to closing the Opportunity Divide by helping young adults reach their potential through higher education and careers. The interns receive support, guidance and hands-on training while serving in roles in technology, marketing and communications and other business functions.


Awards and Recognition

Awarded Prime status by ISS ESG in 2021 to recognise DXC for fulfilling ambitious absolute performance requirements

Recognised by the Carbon Disclosure Project (CDP) for transparently providing our environmental strategy, data and impact, contributing to a truly sustainable global economy

Achieved 100% in the Disability Equality Index – Best Place to Work for Disability Inclusion


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